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Request for Critical Advice

petercaya

petercaya

Joined
8/10/12
Messages
6
Points
11
Hello,

I've been interested in quantitative finance since my sophomore year of college. I graduated from my university (a relative unknown - St.Bonaventure University), with a major in finance and a minor in math. I decided relatively recently that the area that I am most interested in is statistical arbitrage.

After a year of work, I am looking at graduate school but I want to make the right decision for this next step. I have been accepted to the graduate programs in quantitative finance at the University of Buffalo, North Carolina State, among others. I have also put in applications for the mathematics programs at Rochester Institute of Technology and the University of St. Andrews but I haven't heard back about my acceptance.

I reason that at UB, I could load up on courses in the applied math curriculum as electives, and I've heard similar things about NCSU. My current options are these:

1) Go into one of the graduate programs that I have available to me now.
2) Take another half year, year off, score higher on the GRE, take the math subject test for the GRE, apply for admission to math and statistics programs.

I can further elaborate on my background if necessary but I didn't want to lengthen this post more than necessary. I would like straight constructive criticism on my choices for this next step as I know that it is a very important one.

Thank you,


Edit: I know that this appears to be more relevant to grad schools. I am also looking for advise regarding what I might do after graduation to move towards a career in statistical arbitrage.
 
Is your current year of work related to statistical arbitrage?

My advice would be to devise a strategy to get involved with your interests without going to grad school and go to grad school once you find out that what you think you're interested in abstractly is something you would really be interested in doing as job and only if such a graduate degree is useful to the job you want. You will be able better navigate the maze of graduate degrees if you have relevant experience.

A finance degree and a little self-study is enough to understand basic strategies in statistical arbitrage. You'll mostly be using the basics in an entry level position.

I don't know how your financing your proposed graduate school, but I am working under the assumption that the cost is not trivial to you. Working as a lowly intern in your field of interest would be a cheaper option and, quite possibly, more fruitful.
 
Thank you for your thoughtful reply Jose.

No, my current work is not within stat arb. Currently I am working within a back office. In my free time, I have studied C++, and have read through a number of books about quantitative finance, and statistical arbitrage. Now that I understand the basics of how the operations tend to be conducted I am actually digging into the meat of the subject.

My only professional experience related to stat arb is my time in my university's student investment fund which had an endowment from a hedge fund and conducted pairs trading strategies in the energy markets.

I will begin looking into different internships that are offered. You are definitely right; having connections within the field and working from the inside is an alternative that may be a more effective strategy.
 
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